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CBIC notifies GST Rate of Lottery

CBIC notifies GST Rate of Lottery

The Central Board of Indirect Tax & Custom (CBIC) has notified the GST Rate of Lottery. 28%  Uniform rate of GST will be applicable to all lotteries.

The amendment will be effective from March 1st 2020.
Through this amendment, there is no distinction for lottery authorized by State Governments and lottery run by State Governments for the purpose of taxability and, hence, the standard rate of 28% shall apply.

The notification was issued in the name of Pramod Kumar, Director of Government of India. Further, the Central Government on the recommendation of the Council of Ministers exercised their power under Section 9(1) and Section 15(5) of the Central Goods and Services Tax (CGST), 2017 seeks to amend the Notification No. 1/2017-Central Tax (Rate) which was issued on June 28, 2017, for the purpose notifying the rate of Goods and Service Rates (GST) on the supply of lottery.

In the Notification No. 1/2020-Central Tax (Rate), the following amendments are done:
1.In the Schedule II of Notification No. 1/2017-Central Tax (Rate): 6% for S. No. 242 was omitted through this notification.
2.In the Schedule IV of Notification No. 1/2017- 14% for S. No. 228 and the related entries, and the following was substituted namely:
Entry No. Chapter Subject
228 Any Chapter Lottery
Therefore, through this amendment in Schedule II S. No. 242 was omitted and in Schedule IV, the government introduce the Goods and Service Tax Rates (GST) rates pertaining to the lottery.
Further, a notification consisted of a note, which pertained to the Principle Notification No. 1/2017-Central Tax (Rate) that was published on the Gazette of India on June 28, 2017, Extra-ordinary, Part II, Section 3(i) vide number G.S.R. 673(E), dated 28th June 2017 and last amendment by Notification No. 27/2019-Central Tax (Rate) dated December 31, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3(i) vide number G.S.R. 961(E) dated December 30, 2019.

Source: TaxScan

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CBIC enables option to File GSTR-9 & GSTR-9C for FY 2018-19

CBIC enables option to File GSTR-9 & GSTR-9C for FY 2018-19

The Central Board of Indirect Taxes and Customs (CBIC) enabled the option to file GSTR-9 and GSTR-9C for the financial year 2018-19.

GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.

GSTR-9C is reconciliation statement which is every registered person whose turnover during a financial year exceeds the prescribed limit of rupees two crores shall get his accounts audited by a chartered accountant or a cost accountant.GSTR-9C is a statement of reconciliation between the Annual Returns in file GSTR-9 for an FY and the figures as per the audited annual Financial Statements of the taxpayer.

It can be considered to be similar to that of a tax audit report furnished under the Income-tax act. It will consist of gross and taxable turnover as per the Books reconciled with the respective figures as per the consolidation of all the GST returns for an FY. Hence, any differences arising from this reconciliation exercise will be reported here along with the reasons for the same.

The late fees for not filing the annual return on the due date are Rs. 200 per day. This implies that the person has to pay Rs. 100 under the CGST Act and Rs. 100 under the SGST Act as a penalty in case of delay. The penalty is subjected to a minimum of 0.25% of the taxpayer’s turnover in the relevant state. There are no fees on IGST yet.

The due date to file GST annual for the Assessment Year 2018-19 is 31st March 2020.

Source: Tax-Scan

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Central govt releases Rs 19,950 crore GST compensation to states

Central govt releases Rs 19,950 crore GST compensation to states

The central government has released Rs 19,950 crore as GST compensation to states, taking the total amount released to them to over Rs 1.2 lakh crore. In a statement, the finance ministry said Rs 19,950 crore was released to states and union territories last Monday.

When the Goods and Services Tax (GST) came into force in July 2017, states, which lost powers to levy taxes such as VAT, were guaranteed to be compensated for any loss of revenue in the first five years of GST implementation.

This compensation was to come out of a pool that is to be created by levy of cess on certain sin and luxury goods over and above the GST tax rate. The shortfall is calculated assuming a 14 percent annual growth in GST collections by states over the base year of 2015-16.

“With this release of GST compensation, the central government has released a total of Rs 1,20,498 crore towards GST compensation to the states/UTs during current fiscal,” the statement said.

The money released compares to only Rs 78,874 crore having been collected as compensation cess in the current FY (till January 31, 2020).

Finance Ministry officials said total GST compensation cess of Rs 62,611 crore was collected in the FY 2017-18, out of which Rs 41,146 crore was released to the states/UTs that fiscal as GST compensation.

In FY 2018-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore was released to the states/UTs as Good and Services Tax GST compensation.

Officials said that as on March 31, 2019, an amount of Rs 47,271 crore compensation cess collected had remained unutilised after the release of GST compensation to the states/UTs in the 2017-18 and 2018-19.

Source: Money-Control.

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GST authorities detect fraud of over Rs 214 cr

GST authorities detect fraud of over Rs 214 cr

An anti-evasion wing of Central-GST has detected a fraud of more than Rs 214 crore through fake invoices in Delhi, an official release said on Wednesday.

A person has been arrested and sent to judicial custody of 14 days, it added.

The fraud was detected by the anti-evasion wing of CGST Delhi South Commissionerate.

The alleged case of input tax credit fraud was taking place through fake invoices issued by bogus firms.

Investigations found the accused had also been generating bogus e-way bills to back the fake invoices, the finance ministry said in the statement.

“Over 35 entities are involved in the bogus transactions, involving fake invoicing to the tune of Rs 214.74 crore and tax evasion of Rs 38.05 crore,” it said.

Further investigations in the matter are in progress, the ministry said.

Source: Hindustan-Times

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ITC-invoices mismatch: Huge sums sought as GST credit denied

ITC-invoices mismatch: Huge sums sought as GST credit denied

The Goods and services tax (GST) authorities have blocked input tax credits (ITC) claimed by thousands of businesses to the extent these claims are not corroborated by invoices uploaded by their suppliers, multiple tax practitioners and businesses told FE.

While the government had indeed announced that the credit restrictions would be implemented from January 1, for most of the affected businesses, especially for smaller ones, the move could result in a serious cash crunch, as they can now meet the tax liability for the rest of FY20 only through cash.

Though no estimate is available of how much the blocked ITCs would add up to, given that the credits to thousands of firms have been curtailed and the amount in a large number of cases are in crores, credits worth many thousands of crores appear to have been denied.

Among the firms whose unmatched ITC claims have been blocked in their electronic cash ledger are social media giant Facebook. Godrej Housing, Duroflex are too among who have been hit by the policy. An email sent to Facebook remained unanswered.

An analysis by the GST department showed that as much as 39% or Rs. 2.5 lakh crore of ITC claimed by taxpayers in FY18 remained unmatched with the invoices uploaded by their suppliers. Though the gap had come down to 13% (Rs. 1.7 lakh crore) in FY19, it was still very large and unacceptable to the department.

The government’s stated intent behind the move is to curb credit claims based on fake invoices. The move could improve GST collections significantly for the next two months owing to increased cash payment by taxpayers and aid the government’s efforts to bridge the perceived tax revenue shortfall (against the revised estimate in the Budget). However, experts said that gains to the exchequer could gradually taper off as large number of missing invoices will get reconciled at a later stage. All unmatched invoices cannot be attributable to fraudulent practices, tax experts feel.

In October, the government inserted a a clause in GST rule saying that a taxpayer filing GSTR-3B (monthly summary return) can claim provisional input tax credit only to the extent of 10% of the eligible credit available in GSTR-2A. The eligible credit is only against those invoices which show up in a taxpayer’s GSTR-2A, which is possible only if the said assessee’s suppliers file and upload all relevant sale bills in their GSTR-1 (which contains details outward supplies).

If ITC claimed by a taxpayer in GSTR-3B for a given month is, say, Rs 100 and the invoices uploaded by the suppliers are only worth Rs 80, then ITC of Rs 20 does not show up in GSTR-2A in the form of corroborating invoices. So the total credit available to the taxpayer in the case will be Rs 88 (i.e. Rs 80 plus 10% of Rs 80).

Another expert said that the variance between credit claimed in self-declared monthly GSTR-3B and GSTR-2A return could also arise from various issues including non-availability of qualified manpower to match invoices on a monthly basis, technical glitch in tax filings and the MSME filers filing GSTR-1 on a quarterly basis. Late filing of GSTR-1 also leads to mismatch as suppliers’ invoices don’t show up for matching. The compliance rate for GSTR-1 filing has hovered around 65-70% in recent months.

“Tax credit blockage by tax officers without any notice and hearing is spreading tax terrorism at the grass root level, although it is expected to pump up the revenue collections in February and March. However, this would be mitigated in succeeding months,” Rajat Mohan, senior partner at AMRG & Associates said.

Additionally, the GST administration has also started clamping down on taxpayers which have not filed GSTR-3B for long periods of time by asking the assessees’ bank to freeze their account. Tax practitioners said that several such notices have been received by assessees. One such notice seen by FE has raised a payment demand on the bank branch used by Hyderabad-based assessee. It asked the banks to ‘attach all the current/savings A/c./FDR/TDR and lockers’ of the taxpayer who has failed to file GSTR-3B for 20 months and owes Rs 1 crore in taxes.

Source: Financial-Express.

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CBIC mandates Registered Taxpayers to quote GSTIN on EXIM Declarations

CBIC mandates Registered Taxpayers to quote GSTIN on EXIM Declarations

The Central Board of Indirect Taxes and Customs (CBIC) in a circular clarified that it is mandatory for registered taxpayers to declare GSTIN on EXIM declarations in a bid to strengthen all-round coverage of GST supplies.

Certain cases have been reported where the importer or exporter did not declare their GSTIN in the Bill of Entry /Shipping Bill despite being registered with GSTIN. With the effect from 15.02.2020, the declaration of GSTIN shall also be mandatory in Import/Export documents for the importers and exporters registered as GST taxpayers.

Data analytics by the revenue authorities have detected tax evasion through the black market and under-valuing of imports. It has come in to notice that although importers are paying Goods and Services Tax(GST), they are supplying the goods without a bill. They are typically paying integrated goods and services tax (IGST) on goods they bring into the country. This tax is supposed to be set-off against the actual Goods and Services Tax(GST) paid by the final consumer or claimed as a refund.

GSTIN is a 15-digit PAN-based unique identification number allotted to every registered person under Goods and Services Tax(GST). While importers have to fill the Bill of Entry with Customs department while importing goods, exporters have to file Shipping Bill.
The CBIC said certain cases have come to light where the importer or exporter has not declared their GSTIN in the Bill of Entry/Shipping Bill despite being registered with GSTN.

It was further noticed that the supply of imported goods to domestic channels is done without a bill. Importers typically pay integrated goods and services tax (IGST) on goods they bring into the country. The tax paid is to be set-off against the actual GST paid by the final consumer or claimed as a refund.

Importers are paying Integrated Goods and Services Tax(IGST) on imports but not claiming credit for the same which means the supply of imported goods to domestic channels is done without a bill.

Source: Tax-Scan

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New GST filing format, e-invoicing to help in ease of doing biz, reporting for taxes: GSTN CEO

New GST filing format, e-invoicing to help in ease of doing biz, reporting for taxes: GSTN CEO

GST Network CEO Prakash Kumar on Friday said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes.

“E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries,” Kumar said while addressing an event on ‘E-invoicing and New GST Return Format’ organised by the PHD Chamber of Commerce and Industry.

There is a need for standard to ensure complete interoperability, he said. “The economies in the high-income group OECD are at the forefront of invoice digitisation,” he said. The GSTN CEO said that in India, the aim is to make digitisation part of business process of taxpayers and eliminate all manual reporting.

N K Gupta, chairman (indirect taxes committee) of PHD Chamber, said e-invoicing is the new system through which business-to-business (B2B) transactions are authenticated electronically by GSTN.

This is a major step towards the push for a digital economy, he said and lauded that GSTN is improving every day and GST is digitised to a great extent. Sanjay Aggarwal, senior vice-president of PHD Chamber, said e-invoice is the future means of electronic billing.

It has been adopted by many governments internationally. It has been implemented in a staggering manner over a period of time, initially launched for B2B and B2G (business-to-government), he added.

Source: Economic-Times

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Start recovering Rs 46K-Cr unpaid interest on delayed GST payments

Start recovering Rs 46K-Cr unpaid interest on delayed GST payments

The Central Board of Indirect Taxes and Customs (CBIC) has directed principal chief commissioners and chief commissioners to begin recovery of nearly Rs 46,000 crore of unpaid interest on delayed goods and services tax (GST) payments.

The direction which requires officials to report on the recovered amount within a week starting February 10, comes at a time when GST collection target for February and March have been revised to Rs 1.15 lakh crore.

“Interest payable on such delayed payment of tax can be recovered under the provisions of section 79 of the CGST Act read with section 75(12) which provides for various methods by which the proper officer shall proceed to recover any amount which is payable to the government,” CBIC member AK Pandey has said in the letter dated February 10. ET has seen a copy of the letter.

The letter has directed the field offices to, “initiate the process of recovery of such unpaid interest as per the provision of section 79 read with section 75 (12) of the Central GST Act.” It has also clarified that interest is required to be paid on total amount of tax liability.

A senior official said that while the period of unpaid interest begins from the time GST was implemented and goes on till date, the direction to recover that amount was well within the legal ambit, since the liability for paying the interest on delayed tax payments was on the taxpayers.

List of people or entities that have not paid the interest while filing their GSTR 3B forms late has been shared by the Principal Additional Director General (Systems). The department wing had also found that Rs 45,996 crore is the unpaid interest amount.

Tax experts said that the move was likely to trigger litigations with taxpayers challenging the demands, since the government had at the time of migration to the new indirect tax regime waived off interest and penalties for filing their tax returns.

“There will recovery proceedings for this leading to widespread tax litigations and inconvenience to taxpayers,” said Rajat Mohan, senior partner .

Source: Economic-Times

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634 cases of fraud GST refund claims by exporters worth ₹1,912 cr detected

634 cases of fraud GST refund claims by exporters worth ₹1,912 cr detected

As many as 634 cases of fraudulent GST refund claim by exporters amounting ₹1,912 crore has been detected by the central tax authorities between July 2017 to January 2020, Parliament was informed on Tuesday.

In a written reply to a question in the Rajya Sabha, Minister of State for Finance Anurag Singh Thakur said of this ₹238.97 crore has been recovered by the Central GST authorities from the entities which claimed the fraudulent refunds.

A total of 35 persons have been arrested by the CGST authorities, he added.

“The Government has taken measures to use data analytics to identify risky taxpayers and verify them before sanction of refunds,” Thakur said.

In reply to a separate question, Thakur said to identify fraudulent claims the government has taken measures to apply stringent risk parameters-based checks driven by data analytics and Artificial Intelligence (AI) tools.

Also, a standard operating procedure has been prescribed for exporters to mitigate the risk of wrongful Integrated Goods and Services Tax (IGST) refund claims.

To curb cases of wrongful claims of input tax credit, a tax officer not below the rank of Assistant Commissioner has been permitted to block the credit available if he has reasons to believe that such credit is ineligible or has been availed fraudulently, he said.

Source: Live-Mint

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CBIC issues Standard Operating Procedure for Field Formations for Examining and Forwarding Representations of Taxpayers to GSTN

CBIC issues Standard Operating Procedure for Field Formations for Examining and Forwarding Representations of Taxpayers to GSTN

The Central Board of Indirect Tax & Custom (CBIC) through the circular stated that in order to avoid the technical glitches on common portal the Central Board of Indirect Tax & Custom (CBITC) the uniformity in the standard Operating procedure will be followed by the field formations for examining and forwarding the details of taxpayers to Goods and Service Tax Networks (GSTN).

The circular was issued by Sanjay Mangal, Commissioner of Goods and Service Tax (GST) addressing the Principal Chief Commissioners or the Chief Commissioner of Central Tax. The subject-matter of the circular pertained to various rules of uniformity which were introduced in the Central Goods and Service Tax (CGST) Rules, 2017 and also the Income Tax Grievance Redressal Mechanism also came into existence by the recommendation of GST Council in order to address the grievances of the GST payers pertaining to the glitches.

Goods and Service Tax Networks (GSTN) issued a Standard Operating Procedure (SOP) in order to remove glitches on the common portal and ensure uniformity in the procedure which is to be followed by the field formation in order to examine and forward the details of the taxpayers to Goods and Service Tax Networks (GSTN).

The subject-matter of the circular also pertains to the following grievances:
1.While referring to the technical glitches under Goods and Service Tax Networks (GSTN)  the nodal officers failed to follow the procedure prescribed by  Standard Operating Procedure (SOP).
2.The representations sent by the taxpayers are also forwarded to Goods and Service Tax Networks (GSTN) without proper scrutiny.
3.The representations are also at the same time sent without the approval of the Principal Commissioner.

Therefore these casualties have resulted in the difficulty for GSTN for the purpose of timely processing it. All these problems were discussed in the ITGRC meetings. And the Nodal officers are requested to follow the due procedure of scrutiny before sending the representations to the GSTN and the procedure which is ought to be followed is:
1.The taxpayer should be properly examined;
2.After receiving the details the nodal officer will get it examined by the IT Commissioner.
3.On the Basis of the decision of the Income Tax Grievance Redressal Mechanism, the GSTN must be implemented.
4.The Nodal GSTN Officer is supposed to intimate about all these decisions and implementations to the IT Grievance Redressal Committee.

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Source: taxscan
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